Posted on 06/12/2006 8:59:29 AM PDT by Hydroshock
Stock News: Homebuilders/Construction
Builder Pain Spreads to WCI
By Nicholas Yulico TheStreet.com Staff Reporter 6/12/2006 10:40 AM EDT Click here for more stories by Nicholas Yulico
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Homebuilder WCI Communities (WCI:NYSE - commentary - research - Cramer's Take) said second-quarter earnings would likely disappoint because of dismal orders at many of its high-rise condo and single-family housing communities in Florida.
The Bonita Springs, Fla.-based company said new orders fell 50% in the first two months of the second quarter compared to a year earlier. WCI builds homes in various markets across the East Coast, but it has heavy exposure to the frothy real estate market of South Florida, which the company blamed for much of the order shortfall.
WCI now believes that full-year orders will fall 20% from last year, partly because the company is only releasing three to five new condo towers this year, compared with its prior plan of 11 to 13.
Because of the weak operating environment, WCI expects to report second-quarter earnings below its May 9 projection of 75 cents to 85 cents a share.
(Excerpt) Read more at thestreet.com ...
Ping
Still plenty of room for the homebuilder stocks to fall IMO. We aren't anywhere near negative EPS's yet; that phase of the cycle should certainly last for a year or so.
Move along, nothing to see here, tremendous new wealth is being created everytime somebody flips a house. Now where did that great pumpkin go?
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